Hedge fund reinsurer news

According to a report in the Financial Times, one of the world’s largest hedge funds D.E. Shaw which also operates D.E. Shaw Re a Bermuda based reinsurer, is shuttering its flagship funds to new capital as it seeks to safeguard returns for existing investors.

According to numerous reports in the press, SAC Capital, the embattled hedge fund owned by Steven A. Cohen, is looking for a buyer for its year old reinsurer SAC Re, as the hedge fund continues to fight insider trading charges.

Resource Re Ltd., the first reinsurer to join the Multi-Strat Re Ltd. Bermuda based reinsurance venture that seeks to enable asset managers, such as hedge fund managers, to enter the reinsurance market with less friction, is now actively raising capital.

Multi-Strat Re Ltd., the Bermuda based reinsurance venture that enables asset managers, such as hedge fund managers, to enter the reinsurance market with less friction, has a new Chairman and CEO in Bob Forness who was appointed to the roles recently.

Almost a year ago we wrote about a venture called Multi-Strat Re which was being launched in Bermuda to assist hedge fund managers to enter the reinsurance market with less friction, allowing investors and funds to outsource many of the necessary steps in launching and operating a reinsurance business.

SAC Re, the Bermuda based Class 4 reinsurance company backed by Steven A. Cohen, billionaire hedge fund manager and founder of the beleaguered hedge fund SAC Capital Advisors LP, has officially had its financial strength and issuer credit ratings placed under review with negative implications by A.M. Best.

Once again, the investment-side risk that comes with the hedge fund backed reinsurer strategy becomes apparent in a hedge fund reinsurance firms results announcement. This time it’s Greenlight Re, the Cayman Islands domiciled reinsurer backed by hedge fund manager David Einhorn, which has been hit by investment losses. The last time we wrote about Greenlight […]

In a news article published yesterday, rating agency A.M. Best highlight the investment-side risk that comes with the hedge fund backed reinsurer strategy which has been becoming more popular in recent years. These reinsurers, backed by large hedge funds, typically try to access the premium income available in the reinsurance market as a source of […]

The convergence sector of the reinsurance market, where capital market money from investors is put to work in re/insurance transactions which are typically fully-collateralized, is primarily focused on writing high-yielding lines of business such as peak catastrophe risk. Some collateralized and convergence market players dabble in other segments of the market, such as energy or […]

A report from rating agency A.M. Best on the Bermuda reinsurance market singles out hedge fund backed reinsurers as a niche within the sector which could face challenges. Referring to their strategy of focusing on underwriting or investments depending on how hard or soft the reinsurance market is, Best said it could be challenging depending […]